Author Archives: Saran

Speculation is not good for Investors

Investing in stock market is not like betting. The investors should try to avoid speculating on the news about companies that they are trading in. It is not a good practice to move in and move out every time there is some news or rumors about the company. I know many people who keep trading and call them investors.  I call traders, those people who continually indulge in short selling and deal in options and futures. These traders are not investors; they are purely gamblers as you see in many betting houses and casinos around the world. These traders like most gamblers lose eventually or frequently. Continue reading

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Investment should beat Inflation

I never had any idea about inflation until recently. The prices of commodities started reaching north in a stupendous fashion and I was left with no choice other than to live with it. Inflation is nothing but the percentage fall of your money/buying power i.e. today I can buy for Rs. 10 a loaf of bread and in a week’s time with the same amount of money Rs. 10 I can buy just half the loaf of bread. Here inflation is 50% i.e. the value of money has fallen by 50%. Continue reading

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Electronic Herds and their behavior

Now a day, everything in the market is online. This gives extra advantage to the investors around the world to invest in a place where they like to do. An investor in America can buy shares in Indian markets and similarly an Indian investor can invest in American markets. That is how things are in today’s world. This gives the investors the ease to invest in any markets of their choice. The treaties between the governments and the world becoming smaller day by day everything is possible in today’s world. Continue reading

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Markets and its volatility

Today March 23, 2009 is a good day for Indian markets. Market is up by 457 points. There are no strong reasons for why the market is up? I was following couple of market analysts and all that they predicted at 9.30 am is markets “might” be up and it will have resistance in the range of 200 points, one analyst predicted that it will rise and then flatten out and other predicted that there might not be any major changes. In some time during the noon, the analyst realized that the markets are going up and they changed their sentences as, markets are doing well and it will go up further north. This was a good sign to investors. Continue reading

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Market Mess

I have been investing in the Indian Markets for quite a while, approximately 2 years. I have not been so very successful in my attempt to make money from the stock market. I have realized the story of market to certain extent. It is just random and there are no rules that govern the market. This is my “Lesson Learnt” from the market activity. Let me elaborate on this.

Being individual investor and not taking any professional help from the financial institutions, it was not easy for me to decide on the “hot companies”. I was reading all possible news related to companies and market in general to know what to do in the market. But that did not help me go anywhere. I did not know how to choose the portfolio. Which companies are good for long term and short term? When to book profits was other problem once I chose the company? Totally I was confused. Continue reading

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